darksanity successfully answered Dane Summers's question:

Among all the virtual hosting options out there, is there one that allows recursive virtual hosting? Can Xen host another Xen instance?

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Answers by: Jake McArthur | darksanity

darksanity's Answer:

Reply by darksanity 415 days ago

Depends.

If domU is running paravirtualisation, I don't think it is possible to run another layer of paravirtualisation. However it might be possible if the first layer is full virtualisation.

I think it is possible to run Xen -> Qemu -> Xen even with the first domU running in paravirtualisation, as Qemu emulates a full virtual machine in userland, which might let you run another Xen dom0 underneath. Of course the performance would suck.

I think it makes more sense to run a combination of full/para-virtualisation + OS-level virtualisation. For example, running an OpenVZ kernel on your Xen domU.